The world’s leading oil companies are seeking to get involved in Galp’s major Mopane oil discovery in the Orange Basin in Namibia. This discovery, considered the most important so far in this dynamic exploration region, has generated strong interest among international investors.
Galp currently holds 80% of the Mopane development, alongside the national company Namcor and Namibia-based Custos, each holding 10%. Sintana Energy, a Toronto-based exploration company, holds a 49% stake in Custos, thus enhancing the interest of foreign investors in this project.
Investment Opportunities and Potential Partnerships
Galp is willing to sell up to half of its stake in Mopane, which would leave it with 40% of the discovery. However, before proceeding with this sale, the company plans to drill four additional wells on the license in the fourth quarter of 2024. Filipe Silva, CEO of Galp, stated in July that he was not in a hurry to reduce the risks associated with the discovery.
Any potential partner company must demonstrate a willingness to quickly develop the field and contribute the necessary capital expenditures. Galp expects to finalize a partnership by the end of 2025, although the bidding process is already open, indicating strong interest from the supermajors.
Interest from Supermajors and Development Prospects
Sources report “tremendous” interest from supermajors, including Chevron, TotalEnergies, Woodside, and Shell, in a stake in Mopane. Silvia dos Anjos, Exploration and Production Director at Brazilian oil and gas giant Petrobras, expressed the Brazilian state-owned company’s intention to seek the entire 40% stake available.
Petrobras aims to expand its presence in Southwest Africa, capitalizing on its deepwater experience and recent acquisitions of exploration stakes in São Tomé and Príncipe and South Africa. According to Anjos, Africa represents a strategic opportunity for the company’s international growth.
Economic Impact and Future of Oil Production in Namibia
The Mopane discovery, located in Petroleum Exploration License 83 of the Orange Sub-basin, covers an area of 535 square kilometers with water depths of up to 1,680 meters, according to data from Commodity Insights.
Galp has drilled two wells, Mopane-1X and Mopane-2X, which have revealed significant columns of light oil in high-quality reservoir sands, while also confirming a lateral extension, as the wells were drilled 8 kilometers apart.
According to estimates from Commodity Insights, the Mopane field is expected to reach commercial production by 2030 and plateau at 211,000 barrels of oil equivalent per day by 2037. This discovery adds to the significant Venus and Graff discoveries made by TotalEnergies and Shell in 2022, enhancing the appeal of the Orange Basin for major exploration and production firms.
Next Steps and Challenges to Overcome
Galp plans to continue drilling additional wells to fully assess the potential of Mopane before finalizing any stake sale agreements. The need for partners capable of quickly mobilizing financial and technical resources is a key challenge to accelerate the field’s development.
Furthermore, Namibia, which currently does not produce any hydrocarbons, could become a major player in the African oil sector, thereby transforming its economy through ongoing investments and exploration activities in the region.
